THE age you can draw your State Pension is gradually increasing for men and women and will reach 67 by 2028.

And, under the current rules, the State Pension will have increased to 68 sometime between 2044 and 2046.

But this might not be the case for long...

The government is currently consulting on bringing this increase forward following the recommendations in an independent review by John Cridland, former Director-General of the Confederation of British Industry (CBI).

The review is considering if the timetable should be brought forward to between 2037 and 2039 – seven years earlier than originally scheduled.

The plans have not yet been decided and the situation will become clearer when the review is published around May of next year.

The reason for the review has been explained by the government thus: "As the number of people over state pension age increases, due to a growing population and people on average living longer, the government needs to make sure that decisions on how to manage its costs are, robust, fair and transparent for taxpayers now and in the future.

"It must also ensure that as the population becomes older, the State Pension continues to provide the foundation for retirement planning and financial security."

Projections from the Office for National Statistics (ONS) are that the number of people over State Pension age in the UK is expected to grow by one third, from 12.4 million to 16.9 million, by 2042.

The State Pension age is continuously kept under review.

That means it could change again in the future depending on different factors such as life expectancy amongst people in the UK.

Any changes to legislation in State Pension age will be given a minimum of 10 years’ notice “to provide certainty for individuals and allow for ‘windows of stability’ where the impact of each change can be monitored and mitigations introduced if appropriate."

Pushing up the pension age to 68 in 2037-39 would save £74bn by 2045-46 compared to the current State Pension age timetable, the government has calculated.

They favour this over the alternatives which would be to pay lower State Pensions, with an inevitable impact on pension poverty or tasking the younger generation to pay an even larger share in National Insurance contributions.

How the changes would affect you

• Born on or before April 5, 1970 - No change to your State Pension age of 66 or 67, depending on your date of birth
• Born between April 6, 1970 and April 5, 1978 - Your current State Pension age of 67 will increase to between 67 years 1 month and 68 years, depending on your date of birth
• Born after April 6, 1978 - No change to your State Pension age of 68

You can get information on your State Pension, including pension age and what you'll receive, using the Government’s State Pension age checker here but note that it is based on the existing legislation, not the changes mentioned here which are not yet law.

The reality is that many people affected by this change, mainly those born between 1970 and 1978, may need to reconsider their own private pension provision to bridge the gap if they intend to retire before age 68.

Another consideration is the rising minimum pension age which is currently expected to rise to age 57 and sit 10 years below State Pension age.

Should this rise to age 58 seven years earlier than planned, many individuals will need to review their savings and consider incorporating alternative products such as ISAs which do not have age restrictions on withdrawals.

Please rest assured that Future Life Wealth Management's team is closely monitoring these changes. If you're concerned about the repercussions of what's evolving and wish to review your retirement plans, please don't hesitate to get in touch with us HERE.